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tv   Street Signs  CNBC  January 30, 2017 4:00am-5:01am EST

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♪ good morning everybody. you're now watching "street signs." >> these are your headlines. >> risk off rules after the executive order backfires spark widespread protest and condemnation from other heads of state. techs fire backup. the ceo's of apple, microsoft and uber voiced their concerns. now shares are suspend after
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the bank says the capital ratios won't meet requirements. a telecoms tie up near the top of the stock 600 after the company reveals it's in talks to merge with ideocelula. good morning everyone. we've got a lot going on but we've got all covered on "street signs." top republican law makers including senators john mccain, lindsey graham and mitch mcconnell have criticized president trump's order. that's after chaos ensued in the 24 hours after the executive order was signed on friday. more than 100 travellers including refugees and green card holders were detained in airports across the u.s.
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a federal judge in brooklyn temporarily halted the deportation after they argued for refugees and visa holders to be released. and the white house reversed its stance regarding green card holders stating that travel ban would not go to those with green cards. protests erupted in airports across the country. dan shanman with the latest. >> reporter: detainees greeted as heroes. this follows protests order banned from seven countries and indefinitely from syria. thousands gathered in battery park to protest the actions. >> they're bad for america. they're bad for humanity.
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they're bad for our national security, and they are against everything that is american. >> reporter: in philadelphia it airport's international terminal was jammed. snow and frigid temperatures did not stop a demonstration in cleveland while they chanted "islamaphobia's got to go." >> you know we have no room for hate or bigotry in this town and we want to make sure this airport never detains anyone. >> reporter: in san francisco they were joined by attorneys who offered free legal assistance. >> this is just ridiculous. these are some of the most vulnerable people in the world. the refugees are some of the most vulnerable people in the world and the u.s. is not letting them in. >> reporter: he says the united states will issue visas to all seven countries impacted after a
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review of security policies. well, white house chief of staff priebus later clarified on nbc's "meet the press." >> as far as green card holders, it doesn't effect them. if you're coming in and out of one of those seven countries, by the way identified by the obama administration as the seven most dangerous countries in the world in regard to harboring terrorists and affirmed by congress multiple times then you're going to be subjected temporarily with more questioning until a better program is put in place over the next several months. this is something tat 75/80% of americans agree with. >> kellyanne conway reiterated that it did not constitute a
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muslim ban. >> the seven countries. what about the 46 countries not included? right there it totally undercuts this nonsense that tis is a muslim ban. this is a ban on prospective travel from countries trying to prevent terrorists in this country from countries that have a recent history of training and exporting and harboring terrorists. >> it's a 90-day ban as well on these seven countries. so not quite sure what the idea is after the niept days are up. are those things important to note givenen. there is such a focus on islam that approximately 46% of american, african-americans are muslim. so i wonder if this is going to spur further unrest from a community that's divided among the states? >> it's worth noticing that
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since september 11th there are no americans that have died from direct terrorist attack on u.s. soil that was carried out by one of the people coming from those seven countries. that's a fact. of course it was put out by the new york times which the trump administration made claim but that is a fact that's been put out. there's no alternative fact but it is a fact. yes, there have been other terrorist attacks where american civilians were killed. it's very tragic. i'm not condoning terrorism. burt all i'm saying is don't blanket ban syrians and others. >> and a lot of people are thinking precisely that. i was speaking to a couple of weekend and they were saying don't underestimate the movement that's going with regard to the protests on the streets and also in the various airports, lawyers offering services for free for
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people who end up being detained. i ended up being with someone in a larger group who was born in iran and spent am many years in the u.s. and doesn't know how his future looks now. >> i think a lot of uncertainty. >> again it's really extraordinary times. >> i mean we're all refugees in a way and we're all immigrants. we're all looking for a better future for economic reasons, health reasons. we all travel to different countries, don't we? >> or people have had family members in the past that have refugees. and i thought it was quite note worthy looking at teresa may's travel and not saying anything against what the u.s. now seemingly is pushing forward with and getting a whole lot of criticism after that meeting with in turkey and you have
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chancellor mcilroy in germany to educate him basically on what the geneva convention means and in essence it means if you're fleeing war then the international community has to take you in. a wide range of sillicon valley companies have spoken out against president trump's executive order banning certain nationalities from entering the u.s. netflix ceo labelled it sad week and sam cook labelled not a policy we support. uber has announced plans to create a $3 million defense fund to cover legal expenses. this after the ride share came under fire after turning off surge pricing while taxi drivers were boycotting the airport to oppose the travel ban. howard schultz plans to hire 10,000 refugees.
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the number the u.k. said they would take in. he's planned to hire these refugees following donald trump's ban of refugees. mr. schultz said he plans to do everything he can to support effective workers. he said if the affordable care act is repealed and employees lose their coverage, they can get health insurance through starbucks as well. so individual companies are moving forward with their own plans by the looks of things. hadley joins us out of dubai. what's the reaction in the uae to these travel bans? >> reporter: good morning. essentially it's been rather muted. interestingly enough the ceo of bai airport -- you have to remember it's one of the busiest international airports in the world with all of that international travel and we
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heard from the general of federal security in dubai in support of this ban saying that there countries have the right to keep themselves safe. of course we heard from iran and iraq saying there could be retaliatory measures to what president donald trump has inaugurated over the last few days with his executive order and this really does come down to where you're sitting. in the gulf, in the united arab emirates, the conversation has been about social and economic forward planning and about creating safe zones in syria and yemenugees and taking the fight to the islamic state as opposed to talking about this ban. but in terms of what it means for folks thinking about doing businesses in this part of the world and vice versa biggerer questions. >> thank you very much. we'll speak to you soon.
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out of dubai there. just showing what our european equity markerates ts are doing. off 100 by shy of 1%. and we'll hear more about that in a second. just showing you the seconders to the tune of down side. and basic resources off the most. and telecomis doing pretty well. meantime a significant start to improving relations with russia as the kremlin says they pledge to join forces in the fight against isis. notably absent was any talk of lifting sanctions. why? >> reporter: i think it's a little premature particularly when there are so many within the republican party who are
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very unhappy about the idea of relieving pressure on president putin, not least john mccain, of course. but as you look across the political spectrum in the united states, mitch mcconnell and others, senior senators also do not think now is the right time to start taking the pain away from russia given that russians done very little in real terms to remove their forces from ukrain. so what's the best that we can say about this weekend? well it's the first conversation that donald trump has had with president putin. since the inauguration and i guess it does signal something of a thawing in the frosty relationship left by president obama who in the final weeks of his administration imposed further sanctions as a result of alleged medaling in the american election process.
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so both sides saying this telephone conversation that lasted nearly an hour was cordal and the issue of sanctions doesn't seem to have been one they spent very much time on. so early doors but we will wait and watch. clearly there is some momentum within the white house i think to try and get the russian-american relationship just a little bit warmer at this stage, particularly when it comes to any joint action against isis. back to you. meantime, six people have been killed and eight injured at a shooting in a mosque in quebec and what prime minister called a terrorist attack on muslims. two people have been arrested but did not say what prompted the shooting which occurred during sunday prayers.
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trudeax added that muslim canadians are an important part of canada's national fabric. we have a lot to kick off the week both on our markets perspective and political perspective. the address @street signs. and of course we're all on twitter. >> do keep your tweets coming this morning. a banking blues for unicredit. limpet down after unwelcome news for investors. we'll be back in two.
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did you know slow internet can actually hold your business back? say goodbye to slow downloads, slow backups, slow everything. comcast business offers blazing fast and reliable internet that's over 6 times faster than slow internet from the phone company. say hello to internet speeds up to 250 mbps. and add phone and tv for only $34.90 more a month. call today. comcast business. built for business. welcome back to the show. unicredit shows sliding to the bottom of the stock 600 after the bank said its end of capital
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ratios won't reach ecb requirements and said it will post nonrekerring charges of 12.2 billion euros due to the increase in the loss coverage and it will not be able to pay dividends until capital ratios recover. head of the u.k. banking practice. good morning to the ecb is now looking for an alternative plan to deal with the toxic loans from unicredit by it end of february. is that feasible? >> i believe so. i believe unicredit has a bold plan ahead of itself. let's not forget that he hass t largest capital raise in the history of the country. but i believe we shouldn't really judge the performance of the plan of whaults are ewhat's
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because there are a lot of factors that influence the share price at the moment. one is the capital raise itself. the other one is what's going on, on the other hand of the italian capitalism, which is the internation. it's one of the largest banks in italy and it's one of the largest insurance provider in europe. so there are talks about a merger, about an acquisition. and whoever is a share holder has benefit in terms of share price. so i believe that share price is not a perfect indicator of performance right now. we have to look at transform 2019. that's where you see where the bank is going in the next few years. >> even if we see a tie up between gen rally, even if we
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see more consolidation, it doesn't mean that underlying problem for italian banks, that is a huge degree of nonconforming loans will get better anytime soon, will it? >> that's what european regulators said over the weekend. so italian banks should have something to do along the lines. they're working on it. there's a state guarantee of 20 billion and the bank is asking for 13 billion. the it problem is still big compared to what's happening in other european markets. but they have taken the right steps to get rid of it. it economy's not going to grow soon. so we will always have this problem anyway. the plan really works. if you look that strategic plan there's a lot of concern round
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taking care of risk and a very good opportunity to become or to really maintain the status of leadership in germany, italy and eastern europe. so no fancy finance. they want to be a bank and a profitable bank. >> how does this strategic plan differ from the two others with reason why he to step down. how does this strategic plan differ? >> it's much boulder. so the weapon they're throwing in this time is really interesting. also according to what i read there is very well balanced. so there's concern around cost income ratio but there is a major focus on customers.
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we want to be a digital bank. i believe the bank has turned from pure cost slashing towards a more organic growth. >> so you think this is the worst it can get. >> the future is very difficult to predict. that's why a lot of share holders have already said to the big capital raise that's going to happen in february. >> head of u.k. banking practice. sticking with the banks bankia a bigger 23% drop than expected for 2016. they were hit by the low interest rate environment and charges relate stood mismarketed mortgages. after saying it is in discussions with the group about an all share mergerer of idea
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krel ial krelialer. it send shares rallying by more than 20%. the german insurer proposed an after and that's according to blats. and today is on this slower side for earnings but things will pick up when we get earnings from nin tendo and apple. and we close the week with a bang as a busy thursday brings the likes of royal, dutch, share and amazon. it really is the peek for u.s. earnings. and the question really is will earnings, will they justify the
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high valiation uations in the m? >> and given the political environment and are your long dollar and some of the correlations. >> we'll get to that in just a second. >> we will. the bank of japan, the u.s. federal reserve, the bank of england all poise tod make interest rate decisions in the coming days. valentin, what are you looking at this week? >> good morning. focus will definitely be on the feds meeting on wednesday perhaps earlier tomorrow but i guess we do not expect significant changes not in the
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case of the feds. we believe investors will likely focus especially on the fed's statement for wednesday. given we're seeing so much rhetoric from the states, does that mean that we should be limiting our dollar long exposure or should we be upping it thinking the u.s. economy could potentially become stronger? >> i think underperformance of the dollar is an opportunity. we believe the feds while taking into account any protectionest inklineations will continue to focus on the domestic data and i believe the fact they realized inflation as well as inflation expectations have been improving further. accelerating further been tween.
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and could actually increase the chance off the fed upgrading on inflation on monday and that is a nonnegligible risk. >> valentine, i do wonder why your recnending for them to add on to their long dollar positions. when we have the likes of donald trump and tohis secretary actively talking down the dollar or expressing doubts and what it does the economy. >> it is a case that protectionism played a role indeed holding the dollar rally. wreerb seen measurerers of expected rate like precry yield.
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continuing to search. protection is a risk. especially safe haven. and instead the euro. i believe that despite the recent talk without that the president or his treasury secretary will object strongly so long as it retlekts a solid improving u.s. fundamentals. a reason for the subsiding confidence in the dollar rally is precisely that conflict between the policies trump wants to implement which could be very positive and his presumed incestance on not having the dollar rally too hutch. something as the to give before long. we believe the trump
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administration will be more or less successful in supporting growth inflation in the u.s. and they have to live with stronger dollar from here. >> apart from the u.s. dollar which clearly you like. what other currentsis do you recomme recommend. >> we believe this is an interesting pej. in march and that's the dutch parliamentary election followed by the presidential elections in trunt and we believe tlar not in the net. and the widening spread in the euro zone bond markets. that is french yields are now really widening relative to the german yield. that risk still to be priced in.
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and short yen and short euro dollar are ways to express a more cautious view on the euro from here. and we believe scandinavian currency are offering good value for moneymoney. >> thank you so much for tat. head of g 10 fx research. and we're going to go for a break. >> we are indeed. we'll be talking about the french elections a little bit later on and we'll.
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♪ welcome everyone. you're still watching "street signs." >> risk off rules after president trump's executive order backfires with his immigration policy sparking widespread protest and international condemnation from other heads of state. tech executives firing back. the ceo of apple, microsoft, google and uber voice their concern while starbucks ceo is vowing to hire refugees across the globe. unicredit says the ratios won't meet requirements. and a telecoms tie up near
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the top of the stock 600 after it reveals it's in talks to merge with cellular. all right. quick look at european equity markets and we are lower across the board. in. parts over the jitters of the donald trump immigration ban. falling by 0.6 also showing design of 0.8%. given that crude and copper prices are down. the only sectorer that was in the green was telecom's. also want to show you what's going on in the currency phase. given the weaker than expected gdp, 1.9%. putting downward pressure on yields and the travel ban is sending investors into the
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japanese yen. dollar yen at 114.75. down by .03%. and we have german inflationdate aand that is expected to top 2%. the ecb would be happy with 2%. for germany it seems to be happening. >> what happens if we have germany over heating and southern europe not quite there? >> can't cut rates. >> exactly. the u.k. prime minister has said she does not agree and she has reinsurances that most british citizens will be under the ban. an online petition to withdraw the invitation to the president
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has gathered thousands of signatures soar far. this is happening as he's due to meet the u.k. prime minister in dublin later on today. and gemmau joins us from dublin. they're not only going to be talking about possibly the northern/irish border we think. >> the northern irish border will be a huge concern today. kenny and may have made it very clear they're very much in support of maintaining the common travel area which has been in place since 1923 and allows open borders between the uk and we're not sure thal arer be equally supportive of
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maintaining the open border. yourv made the perfectly clear not to agree all of the rest of the countries and there are reports in the irash media tat there's are mixed feelings from different countries about their level of inthuz as im for a deal which pertains to the unique circumstances. as it describes the situation it has with u.k. the fear is a hardboarder is introduced between ireland and the northern south. this brings back memories of an era in which there were custom posts along the border. very ugly memories and potentially socially divisive. that's something both governments are seeking to avoid here. thank you very much. let's continue the conversation
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in the studio. welcome. good morning. so teresa nee having met in turkey and how are the meetings going so far? >> a key part to make a success of brexit is strengthening bilateral trade ties so they can strike free trade agreements from countries outside of europe. the relationship may not be as comfortable as their first meeting suggested it would be. she just said she didn't agree with the immigration ban and she was trying to alay concerns of some of his more controversial views. we'll see how the relationship. develops over the next few years. all they can do is the groundwork.
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>> it came after she got pressure to say something and we had had had this hand holding moment as well. >> no brief. >> they did hold hands briefly. i can't believe they did that. maybe she slipped. >> what happens if you have the likes of angela merkel being a lot more forceful towards mr. trump's policies and other european nations too and leaving the u.k. in a different position. >> well, i mean there's risk that donald trump's comments have rubbed eu the wrong way. the point is the u.k. has to priare ors it. it's got this two year window to wrap up. negotiations. the scope of other free trade
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agreements can't really be designs and sfbed. but her relationship with donald trump will also be important. >> precisely because of the point they were holding hands and everything was so cordial. >> she wants to maintain that special relationship but she doesn't want to be perceived that way. donald trump is quite distrustful of trade deals. she doesn't want to create the asumption that math make it seem as though a trade deal with the u.k. is less economically beneficial for us. >> we know europe, including teresa may doesn't want sanctions to be lifted. the u.s. is lifting for that to
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happen quite soon even though the phone call didn't yield any resulteds when it came to lifting the sanctions. >> this is something she raised in the pres conference again. very clear that they're not going to agree on liflting thanks. whether she's go having to to take long time chances and is diffish to watch. are are where guards to brexit? it. >> with the u.s., it's the largest single country trade partner. exports in the u.s. should, in theory lighten and in reality it'ser likely to be much more complicated.
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and there's the fact that the ufrm u.k. wants the relationship. and it's going to be difficult to recover thereafter. >> a big slow down? >> uncertainty driven. once that reseeds, we can see the economy again. >> european analyst for the intelligence community and we welcome all of your views for sure. "angela is largely to blame for the right-wing poppialism." another view from guys saying we are bias and to regards to our statements and facts in our chat. not even an attempt at balance. we are trying to prevent both sides. sometimes we talk more about one
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side than the other. and if the u.s. ends up being strong, that's good for the world. and you don't do wand to be complised in something that down the line ends -- >> something dangerous. and given our forefatherers are refugees and we our selves are immigrants. i remember the last time i wasn't an immigrant in a country and i think i've constrtributed the all the countries i lived in. it's all about politics as the german and french elections heat up. we'll be back in two.
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following allegations he misused public funds. a land slide victory. almost 60% of the vote. 58.7% of the vote for the socialist nomination and showing us a very divided left, no? >> yes es, louisa. within his political party, that's huge compared to manual and the big question here is the right of the left that led a very combative primary, how can they gather after him when they were so divided on immigration,
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europe and such. that's the question i asked a spokesperson and here's what she had to say. >> nex thing to do is to unite. and for that the first step is to show what we haven't covered because there are things we haven't covered and the ideas that the left has for education are ver similar and were already. and the action that has been conducted since 2012. the question of the energetic transition. a transition that has started probably wasn't as important as it should have been. >> reporter: another big question is, is it even important for benoit to stay in the race? and that's when -- you mentioned
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macron. he is coming closer to fillon. 20% compared to 21 and he's coming closer and that's probably the consequence of the -- and this poll shows in the second round, macron would be able to defeat le pens. how many people are going to join them just to be more efficient? >> claire, good to see you. thank you very much. afrngela merkel used her fit phone call to donald trump and explained the geneva refugee convention and argued the battle against terrorism doesn't
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justify a suspicion of an entire religion. and the leader of the social democrats bidding to unseat angela merkel told party members he would fight for fairerer taxes and a shake up and -- calling the -- here from frankfort. he wants to shake up the political establishment and the social democrats in germany but the party itself is still trailing in the polls. >> reporter: looking at the overall popularity ratings of the party, the party is very much trailing angela merkel's party in the polls. the elections will only take part in the 24th of september.
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i think the social democrats here in germany are snow tho enthusiastic. he is giving them more motivation and a momentum that has been looking for so many months. what has happened in the past in the party they moved to the center more and more but this strategy didn't work out at all. they were even running the risk of falling below the 20% thresh hold. he's not going to be about left like the social candidate in france but he is moving the spd, the social democrats party in germany away from the center, more to the left.
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he's against addressing the social democrat values like equal pay, social pay and fairer working conditions will be very high on his agenda and he will defend the ref unly policy in a way that meesz rr not going to go down the same fath. his face will extend for an open friendly germany and europe. whether he can win with that remains the question. >> thank you so much for that. meanwhile top republican law makers including lindsey graham and mcmcconnell have criticized trump's ban from seven countries. that's after chaos ensued in the 24 hours after the executive order was signed. people were detained in airports
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across the u.s. live from washington. >> reporter: good morning, carolyn. exactly. so this has caused a lot of issues in the united states. the aclu got a temporary injunction against those it already gaining access to the kwluns. now the aclu received $20 million in donations to fight the executive order. norm that he will group only gets 4 million per year. another lawsuit's going to be fooir filed by anb/american group saying that order discriminates against a religion. and you said some republicans are fighting this saying this is not the way the u.s. wants to be perceived around the world. both house and senate democrats
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will be holding a protest at the step oz of the supreme koertd. the friets has said it will not effect those with green cards and the folks who have already been granted access to the united states will be allowed to come in. >> edward, thank you very much. noaa wiw a wide range of sin valley companies have spoken out. netflix ceo labelled it a sad week. apple ceo tim cook tds was quote not a policy we support. keeping in mind that steve jobs late father wouldn't have been allowed inside the u.s. it's probably something quite close to their corporate hearts.
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and athis after they came under fire after turning offer surge pricing. they were boycotting the airport to oppose the travel ban. howard schultz plans to hire 5,000 refugees. in a letterer he said he plans to do everything kmee to support efevive workers. but if it's repealed and employees lose coverage, pick out of there. keep your comments coming through even after the show as well. >> we've been getting a lot of comments on our remarks about refugees. it's freedal of speech. let's put it that way. >> it is interesting to see
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things from both sides. you have to have checks and balances in place and we've letdown our borders. and it and he admitted in a newspaper interview over the weekend that yes, we have made mistakes when it comes to our refugee policies and maybe the berlin attacks would never happened had they had that in place but a blanket ban on refugees, i don't think that's the answer. >> anyway. the discussion continues. thank you very much for being with us. we will see you tomorrow. take care.
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did you know slow internet can actually hold your business back? say goodbye to slow downloads, slow backups, slow everything. comcast business offers blazing fast and reliable internet that's over 6 times faster than slow internet from the phone company. say hello to internet speeds up to 250 mbps. and add phone and tv for only $34.90 more a month. call today. comcast business. built for business.
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good morning. a developing story. president trump defending an immigration ban as protests erupt. corporate america reacts. we'll tell you what corporations are saying. plus delays for delta. computer outage force as domestic ground stop. it's monday, january the 30th, 2017. "world wide exchange" begins right now. ♪ >> good morning. oo very


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